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To amend sections 4111.03, 4111.05, 4111.10, 4111.13, | 1 |
and 4111.99 and to enact section 4111.031 of the | 2 |
Revised Code to give private sector employers the | 3 |
option to offer and employees the option to | 4 |
accrue and use compensatory time off in lieu of | 5 |
monetary overtime compensation. | 6 |
Section 1. That sections 4111.03, 4111.05, 4111.10, 4111.13, | 7 |
and 4111.99 be amended and section 4111.031 of the Revised Code be | 8 |
enacted to read as follows: | 9 |
Sec. 4111.03. (A) | 10 |
4111.031 of the Revised Code, an employer shall pay an employee | 11 |
for overtime at a wage rate of one and one-half times the | 12 |
employee's wage rate for hours worked in excess of forty hours in | 13 |
one
| 14 |
subject to the exemptions of section 7 and section 13 of the | 15 |
"Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 U.S.C.A. | 16 |
207, 213, as amended. | 17 |
Any employee employed in agriculture shall not be covered by | 18 |
the overtime provision of this section. | 19 |
(B) If a county employee elects to take compensatory time off | 20 |
in lieu of overtime pay, for any overtime worked, compensatory | 21 |
time off may be granted by the employee's administrative superior, | 22 |
on a time and one-half basis, at a time mutually convenient to | 23 |
the employee and the administrative superior within one hundred | 24 |
eighty days after the overtime is worked. | 25 |
(C) A county appointing authority with the exception of the | 26 |
county department of job and family services may, by rule or | 27 |
resolution as is appropriate, indicate the authority's intention | 28 |
not to be bound by division (B) of this section, and to adopt a | 29 |
different policy for the calculation and payment of overtime than | 30 |
that established by that division. Upon adoption, the alternative | 31 |
overtime policy prevails. Prior to the adoption of an alternative | 32 |
overtime policy, a county appointing authority with the exception | 33 |
of the county department of job and family services shall give a | 34 |
written notice of the alternative policy to each employee at least | 35 |
ten days prior to its effective date. | 36 |
(D) As used in this section and section 4111.031 of the | 37 |
Revised Code: | 38 |
(1) "Compensatory time off" means hours during which an | 39 |
employee is not working that are not counted as hours worked | 40 |
during the applicable work week or other work period for purposes | 41 |
of overtime compensation and for which the employer compensates | 42 |
the employee at the employee's regular rate of pay. | 43 |
(2) "Collective bargaining agreement" means an agreement | 44 |
entered into between the representative of an employer and the | 45 |
exclusive representative of employees in an appropriate unit | 46 |
regarding the conditions of employment affecting the employees. | 47 |
(3) "Employ" means to suffer or to permit to work. | 48 |
| 49 |
instrumentalities, and its political subdivisions and their | 50 |
instrumentalities, any individual, partnership, association, | 51 |
corporation, business trust, or any person or group of persons, | 52 |
acting in the interest of an employer in relation to an employee, | 53 |
but does not include an employer whose annual gross volume of | 54 |
sales made for business done is less than one hundred fifty | 55 |
thousand dollars, exclusive of excise taxes at the retail level | 56 |
which are separately stated. | 57 |
| 58 |
employer but does not include: | 59 |
(a) Any individual employed by the United States; | 60 |
(b) Any individual employed as a baby-sitter in the | 61 |
employer's home, or a live-in companion to a sick, convalescing, | 62 |
or elderly person whose principal duties do not include | 63 |
housekeeping; | 64 |
(c) Any individual engaged in the delivery of newspapers to | 65 |
the consumer; | 66 |
(d) Any individual employed as an outside salesperson | 67 |
compensated by commissions or employed in a bona fide executive, | 68 |
administrative, or professional capacity as such terms are defined | 69 |
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 | 70 |
U.S.C.A. 201, as amended; | 71 |
(e) Any individual who works or provides personal services of | 72 |
a charitable nature in a hospital or health institution for which | 73 |
compensation is not sought or contemplated; | 74 |
(f) A member of a police or fire protection agency or student | 75 |
employed on a part-time or seasonal basis by a political | 76 |
subdivision of this state; | 77 |
(g) Any individual in the employ of a camp or recreational | 78 |
area for children under eighteen years of age and owned and | 79 |
operated by a nonprofit organization or group of organizations | 80 |
described in Section 501 (c)(3) of the "Internal Revenue Code of | 81 |
1954," and exempt from income tax under Section 501 (a) of that | 82 |
code; | 83 |
(h) Any individual employed directly by the house of | 84 |
representatives or directly by the senate. | 85 |
(6) "Exclusive representative" means any labor or employee | 86 |
organization that is certified as the exclusive representative of | 87 |
employees under the "National Labor Relations Act," 49 Stat. 449 | 88 |
(1935), 29 U.S.C. 151, as amended, or Chapter 4117. of the Revised | 89 |
Code, or that is recognized by an employer, immediately before the | 90 |
effective date of this amendment and for any time that recognition | 91 |
continues thereafter, as the exclusive representative of | 92 |
employees in an appropriate unit. | 93 |
(7) "Regular rate" includes all remuneration for employment | 94 |
paid to, or on behalf of, an employee except: | 95 |
(a) Sums paid as gifts, or payments in the nature of gifts | 96 |
made on the occasion of a holiday or other special occasion as a | 97 |
reward for service, the amounts of which are not measured by or | 98 |
dependent on hours worked, production, or efficiency; | 99 |
(b) Payments made for occasional periods when no work is | 100 |
performed due to vacation, holiday, illness, failure of the | 101 |
employer to provide sufficient work, or other similar cause, | 102 |
reasonable payment for traveling expenses or other expenses | 103 |
incurred by an employee in the furtherance of the employer's | 104 |
interests and properly reimbursable by the employer, and other | 105 |
similar payments to an employee that are not made as compensation | 106 |
for hours of employment; | 107 |
(c) Sums paid in recognition of services performed during a | 108 |
given period if any of the following applies: | 109 |
(i) The decision to make payment and the amount of the | 110 |
payment is determined at the sole discretion of the employer at or | 111 |
near the end of the period, and not pursuant to any prior | 112 |
contract, agreement, or promise causing the employee to expect the | 113 |
payments regularly. | 114 |
(ii) The payments are made pursuant to a bona fide | 115 |
profit-sharing plan or trust or bona fide thrift or savings plan. | 116 |
(iii) The payments are talent fees paid to performers, | 117 |
including announcers, on radio and television programs. | 118 |
(d) Contributions irrevocably made by an employer to a | 119 |
trustee or third person pursuant to a bona fide plan for providing | 120 |
old-age, retirement, life, accident, or health insurance or | 121 |
similar benefits for employees; | 122 |
(e) Extra compensation provided by a premium rate paid for | 123 |
certain hours worked by the employee in a day or work week because | 124 |
the hours are worked in excess of eight in a day or in excess of | 125 |
the maximum work week applicable to the employee under division | 126 |
(A) of this section or, if the extra compensation and premium rate | 127 |
is not paid under an employment contract or collective bargaining | 128 |
agreement as provided under division (D)(7)(g) of this section, in | 129 |
excess of the employee's normal or regular working hours; | 130 |
(f) Extra compensation provided by a premium rate paid for | 131 |
work by the employee on Saturdays, Sundays, holidays, or regular | 132 |
days of rest, or on the sixth or seventh day of the work week | 133 |
where the premium rate is not less than one and one-half times the | 134 |
rate established in good faith for like work performed during | 135 |
nonovertime hours on other days; | 136 |
(g) Extra compensation provided by a premium rate paid to an | 137 |
employee under an applicable employment contract or collective | 138 |
bargaining agreement, for work outside of the hours established in | 139 |
good faith by the contract or agreement and outside of the basic, | 140 |
normal, or regular workday that does not exceed eight hours, or of | 141 |
the work week that does not exceed the maximum work week | 142 |
applicable to the employee under division (A) of this section, | 143 |
where the premium rate is not less than one and one-half times | 144 |
the rate established in good faith by the contract or agreement | 145 |
for like work performed during the workday or work week. | 146 |
Sec. 4111.031. (A) An employee other than an employee | 147 |
described in division (J) of this section may receive, in | 148 |
accordance with this section and in lieu of monetary overtime | 149 |
compensation, compensatory time off at a rate of not less than one | 150 |
and one-half hours for each hour of employment for which monetary | 151 |
overtime compensation otherwise is required under division (A) of | 152 |
section 4111.03 of the Revised Code. | 153 |
(B) An employer may provide compensatory time off to an | 154 |
employee under this section only in accordance with the following | 155 |
provisions and conditions: | 156 |
(1) The applicable provisions of a collective bargaining | 157 |
agreement between the employer and the employees' exclusive | 158 |
representative that is designated or selected under section 9(a) | 159 |
of the "National Labor Relations Act," 49 Stat. 449 (1935), 29 | 160 |
U.S.C. 159(a), as amended; | 161 |
(2) In the case of employees who are not represented by a | 162 |
labor organization as provided in section 9(a) of the "National | 163 |
Labor Relations Act," 49 Stat. 449 (1935), 29 U.S.C. 159(a), as | 164 |
amended, an agreement or understanding arrived at between the | 165 |
employer and employee before the performance of the work involved, | 166 |
if the agreement or understanding is entered into knowingly and | 167 |
voluntarily by and at the initiation and request of the employee, | 168 |
and is not a condition of employment; | 169 |
(3) The employee has affirmed in a written or otherwise | 170 |
verifiable statement that the employee has initiated a request to | 171 |
receive compensatory time off in lieu of monetary overtime | 172 |
compensation and the employer keeps a record of that statement | 173 |
with the employee's employment records that the employer is | 174 |
required to make and keep under section 4111.08 of the Revised | 175 |
Code; | 176 |
(4) The employee has not already accrued two hundred forty | 177 |
hours of compensatory time off. | 178 |
(C)(1) Not later than the thirty-first day of January of each | 180 |
calendar year, an employer shall provide monetary overtime | 181 |
compensation at the rate prescribed by division (G) of this | 182 |
section for any unused compensatory time off that the employee | 183 |
accrued during the preceding calendar year. An employer may | 184 |
designate and communicate to its employees an alternative | 185 |
twelve-month period other than the calendar year, in which case | 186 |
the monetary overtime compensation payment required by this | 187 |
division shall be paid not later than thirty-one days after the | 188 |
end of the alternative twelve-month period. | 189 |
(2) At any time during the calendar year or alternative | 190 |
twelve-month period, an employer may provide monetary overtime | 191 |
compensation at the rate required by division (G) of this section | 192 |
for an employee's unused compensatory time off in excess of | 193 |
eighty hours. The employer shall give the employee written notice | 194 |
of the employer's intent to provide that compensation at least | 195 |
thirty days before doing so. | 196 |
(D) An employer that provides compensatory time off to an | 197 |
employee under this section may cease doing so upon giving the | 198 |
employee written notice of the employer's intent at least thirty | 199 |
days before discontinuing the practice. | 200 |
(E) An employee may withdraw an agreement or understanding | 201 |
described in division (B)(2) of this section at any time and may | 202 |
request in writing that monetary overtime compensation be provided | 203 |
for all of the employee's unused compensatory time off. Within | 204 |
thirty days after receipt of the written request, the employer | 205 |
shall pay to the employee the monetary overtime compensation due | 206 |
in accordance with division (G) of this section. | 207 |
(F) An employer shall pay monetary overtime compensation, in | 208 |
accordance with division (G) of this section, to an employee for | 209 |
any unused compensatory time off that the employee has accrued | 210 |
under this section, upon the voluntary or involuntary termination | 211 |
of employment. | 212 |
(G) If an employer pays monetary overtime compensation to an | 213 |
employee for unused compensatory time off, the employer shall make | 214 |
payment based on the regular rate of pay received by the employee | 215 |
when the compensatory time off was earned. For purposes of this | 216 |
division, compensatory time off shall be deemed used in the same | 217 |
order it is earned. | 218 |
(H) Any payment owed to an employee under this section for | 219 |
unused compensatory time off shall be considered unpaid monetary | 220 |
overtime compensation. | 221 |
(I) An employer shall permit an employee who has accrued | 222 |
compensatory time off authorized under this section the use of | 223 |
that time within a reasonable period after the employee makes a | 224 |
request for such use, if the requested use does not unduly disrupt | 225 |
the operations of the employer. | 226 |
(J) This section does not apply to any of the following | 227 |
employees: | 228 |
(1) An employee of the state, its instrumentalities, or its | 229 |
political subdivisions or their instrumentalities; | 230 |
(2) An individual employed by a contractor or subcontractor | 231 |
to perform labor or provide services to construct, alter, erect, | 232 |
improve, repair, demolish, remove, dig, or drill any part of a | 233 |
structure or improvement. | 234 |
(K) As used in this section: | 235 |
(1) "Contractor" has the same meaning as in section 4113.61 | 236 |
of the Revised Code. | 237 |
(2) "Monetary overtime compensation" means pay for overtime | 238 |
as required under division (A) of section 4111.03 of the Revised | 239 |
Code. | 240 |
(3) "Subcontractor" has the same meaning as in section | 241 |
1311.01 of the Revised Code. | 242 |
Sec. 4111.05. The director of commerce shall adopt rules in | 243 |
accordance with Chapter 119. of the Revised Code as the director | 244 |
considers appropriate to carry out the purposes of sections | 245 |
4111.01 to 4111.17 of the Revised Code. The rules may be amended | 246 |
from time to time and may include, but are not limited to, rules | 247 |
defining and governing apprentices, their number, proportion, and | 248 |
length of service; bonuses and special pay for special or extra | 249 |
work; permitted deductions or charges to employees for board, | 250 |
lodging, apparel, or other facilities or services customarily | 251 |
furnished by employers to employees; inclusion of ascertainable | 252 |
gratuities in wages paid; allowances for unascertainable | 253 |
gratuities or for other special conditions or circumstances which | 254 |
may be usual in particular employer-employee relationships; | 255 |
compensatory time off for employees under section 4111.031 of the | 256 |
Revised Code; and the method of computation or the period of time | 257 |
over which wages may be averaged to determine whether the minimum | 258 |
wage or overtime rate has been paid. | 259 |
Sec. 4111.10. (A) Any employer who pays any employee less | 260 |
than wages to which the employee is entitled under section 4111.03 | 261 |
of the Revised Code, is liable to the employee affected for the | 262 |
full amount of the overtime wage rate, less any amount actually | 263 |
paid to the employee by the employer, and for costs and reasonable | 264 |
attorney's fees as may be allowed by the court. Any agreement | 265 |
between the employee and the employer to work for less than the | 266 |
overtime wage rate is no defense to an action. | 267 |
(B)(1) Any employer who violates division (D) of section | 268 |
4111.13 of the Revised Code is liable to the employee affected in | 269 |
a dollar amount equal to the sum of the following: | 270 |
(a) The number of unused compensatory time off hours involved | 271 |
in the violation, multiplied by the regular rate of pay received | 272 |
by the employee when that compensatory time off was earned; | 273 |
(b) As liquidated damages, the total number of the employee's | 274 |
compensatory time off hours involved in the violation, multiplied | 275 |
by the regular rate of pay received by the employee when that | 276 |
compensatory time off was earned; | 277 |
(c) Costs and reasonable attorney's fees as may be allowed by | 278 |
the court. | 279 |
(2) For purposes of this division, compensatory time off | 280 |
shall be deemed used in the same order it is earned. | 281 |
(3) The liability imposed under this division is in addition | 282 |
to any other civil or criminal liability imposed under sections | 283 |
4111.01 to 4111.17 of the Revised Code. | 284 |
(4) As used in this division, "compensatory time off" has the | 285 |
same meaning as in section 4111.03 of the Revised Code. | 286 |
(C) At the written request of any employee paid less than the | 287 |
wages to which the employee is entitled under section 4111.03 of | 288 |
the Revised Code, the director of commerce may take an assignment | 289 |
of a wage claim in trust for the assigning employee and may bring | 290 |
any legal action necessary to collect the claim. The employer | 291 |
shall pay the costs and reasonable attorney's fees allowed by the | 292 |
court. | 293 |
Sec. 4111.13. (A) No employer shall hinder or delay the | 294 |
director of commerce in the performance of the director's duties | 295 |
in the enforcement of sections 4111.01 to 4111.17 of the Revised | 296 |
Code, or refuse to admit the director to any place of employment, | 297 |
or fail to make, keep, and preserve any records as required under | 298 |
those sections, or falsify any of those records, or refuse to make | 299 |
them accessible to the director upon demand, or refuse to furnish | 300 |
them or any other information required for the proper enforcement | 301 |
of those sections to the director upon demand, or fail to post a | 302 |
summary of those sections or a copy of any applicable rules as | 303 |
required by section 4111.09 of the Revised Code. Each day of | 304 |
violation constitutes a separate offense. | 305 |
(B) No employer shall discharge or in any other manner | 306 |
discriminate against any employee because the employee has made | 307 |
any complaint to the employee's employer, or to the director, that | 308 |
the employee has not been paid wages in accordance with sections | 309 |
4111.01 to 4111.17 of the Revised Code, or because the employee | 310 |
has made any complaint or is about to cause to be instituted any | 311 |
proceeding under or related to those sections, or because the | 312 |
employee has testified or is about to testify in any proceeding. | 313 |
(C) No employer shall pay or agree to pay wages at a rate | 314 |
less than the rate applicable under sections 4111.01 to 4111.17 of | 315 |
the Revised Code. Each week or portion thereof for which the | 316 |
employer pays any employee less than the rate applicable under | 317 |
those sections constitutes a separate offense as to each employer. | 318 |
(D)(1) No employer that provides compensatory time off to an | 319 |
employee under section 4111.031 of the Revised Code shall, | 320 |
directly or indirectly, intimidate, threaten, or coerce, or | 321 |
attempt to intimidate, threaten, or coerce, or terminate or | 322 |
attempt to terminate the employment of, that employee for the | 323 |
purposes of: | 324 |
(a) Interfering with the employee's rights to request or not | 325 |
request compensatory time off in lieu of monetary overtime | 326 |
compensation; | 327 |
(b) Requiring the employee to use compensatory time off. | 328 |
(2) As used in this division: | 329 |
(a) "Compensatory time off" has the same meaning as in | 330 |
section 4111.03 of the Revised Code. | 331 |
(b) "Intimidate, threaten, or coerce" includes promising to | 332 |
confer or conferring any benefit including appointment, | 333 |
promotion, or compensation, or effecting or threatening to effect | 334 |
any reprisal, including deprivation of appointment, promotion, or | 335 |
compensation. | 336 |
(c) "Monetary overtime compensation" has the same meaning as | 337 |
in section 4111.031 of the Revised Code. | 338 |
(E) No employer shall otherwise violate sections 4111.01 to | 339 |
4111.17 of the Revised Code, or any rule adopted thereunder. Each | 340 |
day of violation constitutes a separate offense. | 341 |
Sec. 4111.99. (A) Whoever violates division (A) or
| 342 |
section 4111.13 of the Revised Code is guilty of a misdemeanor of | 343 |
the fourth degree. | 344 |
(B) Whoever violates division (B)
| 345 |
4111.13 of the Revised Code is guilty of a misdemeanor of the | 346 |
third degree. | 347 |
(C) Whoever violates section 4111.17 of the Revised Code is | 348 |
guilty of a minor misdemeanor. | 349 |
Section 2. That existing sections 4111.03, 4111.05, 4111.10, | 350 |
4111.13, and 4111.99 of the Revised Code are hereby repealed. | 351 |
Section 3. Not later than thirty days after the effective | 352 |
date of this section, the Director of Commerce shall revise the | 353 |
printed materials that the Director makes available to employers | 354 |
and employees for the purpose of explaining the requirements of | 355 |
sections 4111.01 to 4111.17 of the Revised Code to reflect the | 356 |
amendments made to those sections by this act. | 357 |
Section 4. Section 4111.03 of the Revised Code is presented | 358 |
in this act as a composite of the section as amended by both Sub. | 359 |
H.B. 187 and Am. Sub. H.B. 690 of the 126th General Assembly. The | 360 |
General Assembly, applying the principle stated in division (B) | 361 |
of section 1.52 of the Revised Code that amendments are to be | 362 |
harmonized if reasonably capable of simultaneous operation, finds | 363 |
that the composite is the resulting version of the section in | 364 |
effect prior to the effective date of the section as presented in | 365 |
this act. | 366 |